If you and a business partner are starting a company in California, it is important to understand local and federal legislation that affects everything from how the partnership agreement needs to be worded to how taxes on the business are paid. Here are 5 important steps when it comes to forming a business partnership in California.
Step 1: Selecting a Business Name
This step involves several things. First, you need to choose a company name. Then you have to check and make sure that the business name is available and not registered by another company. Finally, the business name must be registered in your local county. You can also register the business federally.
Step 2: Complete the Partnership Agreement
This step also has multiple parts. First, the agreement needs to be drafted. Investing in the help of a business lawyer who specializes in small businesses and partnerships is a great way to find affordable help that protects each member of the partnership. Once the partnership agreement has been drafted and signed, you can continue to the next step.
Step 3: License the Business
Most local counties and some cities require that any company doing business carries a license. The right business attorney can help you to acquire these necessary documents as well.
Step 4: Learn About Tax Obligations
Which tax forms do you need to file? If your company will be hiring employees, what are the tax implications? Do you have to carry worker’s compensation? These are important questions to answer.
Step 5: Open Necessary Business Accounts
Bank accounts or credit lines for the business can now be opened in the registered business name. These will help you to conduct business and accept payment.
A Small Business Law Practice for Small Businesses Including Partnerships
Pokala Law is a small business law practice that specializes in helping small businessesp to get off to a good start. This includes drafting partnership agreements as well as helping you to acquire necessary licenses and other business documentation. Call 844-695-1487 today to get affordable help with your business partnership formation.